Ford Plans to Reduce Debt by $3 Billion

Ford Motor co. (F) on Thursday said it will pay down another $3 billion in debt in the first quarter as it works toward the goal of regaining its investment-grade credit rating. The auto-maker plans to redeem $3 billion in preferred securities in March, reducing annual interest costs by about $190 million. As of December 31 Ford reported debt of $19.1 billion, after reducing debt by $14.5 billion during fiscal 2010.

“We remain focused on reducing our automotive debt as the core business continues to strengthen,” Ford Chief Financial Officer Lewis Booth said in a statement.

Shares of Ford gained more than 1.5% to $16.20 in extended trading after closing at $15.95 on the NYSE.

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